General Tutoring Industry

The tutoring industry offers both test preparation and academic tutoring services to students. Most test preparation provided in this industry revolves around SAT and ACT prep, as they are the two dominant college entrance exams in the US. This industry is separate from academic institutions like high schools or colleges, and it also excludes online only operations and other institutions that offer training services in areas that are not primarily academic, such as driving, art, or technical skills. There are very few established tutoring franchises in this industry — the number one being Kumon — resulting in a low market share concentration. There are relatively few barriers to entry for the tutoring industry, and franchisors enjoy the benefit of inheriting a business that is already well-established and well-reputed.

Education Industry Trends

Companies in the education industry will continue to invest in digitizing their curriculum and teaching methods, as the business world comes to increasingly rely on virtual platforms to conduct their operations. The COVID-19 pandemic has only amplified the need for education to be made accessible online, and many institutions that were traditionally brick and mortar have been forced to transition to a virtual platform. Even before the pandemic, the advent of technology has been viewed as an opportunity to better facilitate student learning, and many businesses in the education industry have relied on digital tools to enrich their curriculum. A separate driving force for this trend of digitization in the education industry as a whole is the shift of the US from a manufacturing based economy to a service based economy, with more and more jobs requiring higher education. As a result, many working adults are looking to advance their education, but in a way that is flexible with their busy schedules. Institutions of the education industry that can provide this flexibility through a virtual platform have become increasingly valuable.